From Mosaic Community Lifestyle Realty:
Asheville and Buncombe County Real Estate Market Update 3rd Quarter 2017
The housing market in Asheville and Buncombe County seems to have leveled off, as prices have stopped climbing and the volume of sales has either remained the same (Asheville) or dropped (Buncombe County). In Asheville, there were 411 sales in the 3rd quarter of 2017 compared to 411 sales in the 3rd quarter of 2016. In Buncombe County, there were 683 sales in the 3rd quarter of 2017 compared to 800 sales in the 3rd quarter of 2016.
The median home sale price in Asheville rose between the 3rd quarters of 2016 and 2017, going from $284,700 to $289,000 respectively, but the median home sale price dropped between the 2nd and 3rd quarters of 2017, from $300,000 to $289,000. In Buncombe County, the median home sale price leapt from $251,490 in the 3rd quarter of 2016 to $270,000 in the 3rd quarter of 2017, and was unchanged between the 2nd and 3rd quarters of 2017. Median home prices are up for the year-to-date in 2017 compared to 2016 in both Asheville and Buncombe County.
The Average Days on Market (DOM) in Asheville was 57 days in the 1st – 3rd quarters, relatively unchanged from 55 days in 2016. The average DOM in Buncombe County decreased slightly from 77 days in 2016 to 72 days in the 1st-3rd quarters. It is too early to tell whether the Asheville and Buncombe County market has settled into a new era of low inventory and high prices, or whether low inventory will ultimately cause prices to climb further. The impact of the late summer hurricanes in Texas and Florida also might have had an impact on the number of sales in the 3rd quarter of 2017. If that is the case, we could see prices climb through the next few quarters as delayed purchases come to fruition from people that live in hurricane impacted areas.
Inventory levels are some of the best indicators of the health of a housing market. When inventory levels are more than 6 months it is a buyer’s market and there is downward pressure on prices and when inventory levels are less than 6 months, it is a seller’s market and there is upward pressure on prices. Inventory levels are low in the County, and were significantly lower in the 3rd quarter 2017 compared to the 3rd quarter of 2016. Low inventory, coupled with higher prices, helps to explain the drop in sales volume in the County. Fewer available homes and more expensive homes can lead to fewer sales. In the City of Asheville, inventory was also low, and was lower in the 3rd quarter of 2017 compared to the 3rd quarter of 2016.